Helping Investors Recover Compensation for Poor Financial Advice
Not every investment is appropriate for every investor. For instance, inexperienced investors and those approaching retirement often prefer conservative investment strategies, while investors with substantial uncommitted resources may wish to pursue riskier investments. Investment advisers, securities brokers and financial planners who advise investors on their portfolios have a responsibility to know their clients and recommend suitable investments.
When these professionals recommend clearly unsuitable investments, they can be held legally accountable for losses suffered by their clients. At the law firm of Schachter Harris, LLP, our team of Dallas lawyers helps investors in Texas and nationwide pursue unsuitability claims.
Holding Investment Professionals Accountable for Their Actions
Every investment opportunity comes with a certain amount of financial risk, but some are riskier than others. Investment advisers and other financial professionals have a responsibility to assess their clients´ financial resources and goals, explain the relative risks associated with different investment strategies, and recommend sound investments. The following are a few examples of circumstances in which an investment might be deemed unsuitable:
- An investment adviser recommends investing in a bond fund without explaining how these funds differ from bonds, which are generally considered secure investments.
- A stockbroker recommends that an inexperienced client trade in highly risky options without explaining those risks and the availability of less risky alternatives.
The Financial Industry Regulatory Authority (FINRA) has specific rules and guidelines with respect to investment suitability. Our attorneys have been successful at holding financial professionals legally accountable to the standards of their professions. To schedule a consultation to discuss your case, please contact us.
